Page 44 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 2: Development of Management Theories

1. The individual roles as defined and norms established by their social system differ from Notes
those of the formal organisation. Workers follow the social norms rather than try to
achieve the target management thinks they can achieve even though this would have
helped them earn better and as much as they physically can.
2. Non-economic rewards and social sanctions also play quite a significant role in guiding
the behaviour of the workers. It is their perception of the situation that matters and not
that of the management. They fear retaliation for violating the group norms. So, they
follow group norms and are not motivated by the economic incentive plans.
3. The group plays an important role in determining the attitudes and performance of
individual worker. Often workers do not act or react as individuals but as a member of
their group. A worker can more readily accept the change in his behaviour if the group of
which he is a member changes its behaviour.
4. Informal leader and not the formal leader, i.e., the formal in-charge of the group as
supervisor or manager, sets and enforces the group norms. Formal leader is proved
ineffective unless he conforms to the norms to the group of which he is in-charge.
5. There is need for communication between the ranks participation in decision-making and
democratic leadership. It explains to the lower participants as to why the management has
taken a particular decision. The lower ranks are allowed to share in the decisions taken by
the higher management especially in matters concerning them. Thus, suggesting that the
management is just, non-arbitrary and concerned with the problems of workers and not
only with the work output.
6. Increasing satisfaction leads to increased organisation effectiveness.
7. The management should possess not only technical skills but also effective social skills.
8. People are motivated in the organisation not merely by the satisfaction of lower needs but
by fulfilling certain higher level needs.
The above conclusion of Hawthorne Experiments received a wide publicity and they changed
the attitude and the thinking of the management significantly. This approach was further
persuaded relentlessly by behaviourists.

Task Identify the non-economic rewards given to the employees at any one company
of your choice.

2.2.4 Systems Approach to an Organisation

We may look at the organisation from two different angles:

1. We may consider the overall picture of the organisation as a unit; or
2. We may consider the relationship between its various internal components.
When we consider the overall picture of the organisation, we consider all the elements—internal
and external—and their effects on each other simultaneously. This approach may be called the
‘goalistic view’ because it tries to reach the goal of an organisation by unifying the efforts of all
the elements. For example, when we consider finance, workers and their attitude, technological
developments, etc. we are following goalistic view. It serves as a mean-ends analysis which in
turn facilitates division of work and helps in judging the extent of success of comparing actual
and targeted performance. But it does not answer many problems such as interdependence of

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